© 2024 Louisville Public Media

Public Files:
89.3 WFPL · 90.5 WUOL-FM · 91.9 WFPK

For assistance accessing our public files, please contact info@lpm.org or call 502-814-6500
89.3 WFPL News | 90.5 WUOL Classical 91.9 WFPK Music | KyCIR Investigations
Play Live Radio
Next Up:
0:00
0:00
0:00 0:00
Available On Air Stations
Stream: News Music Classical

Kentucky Pays Off $972 Million Loan For Unemployment Benefits Seven Years Early

Ervins Strauhmanis/Creative Commons

Kentucky has paid off a $972 million federal loan it borrowed to shore up the state’s unemployment insurance program during the recession that began in 2008. The loan was scheduled to be paid off in 2022.

As a result, employers will pay $165 million less in federal unemployment taxes, or $105 less per employee, according to Gov. Steve Beshear's office.

“The paying off of our UI debt to the federal government is an undeniable sign that Kentucky is back and back with a vengeance,” Beshear said Monday.

The trust fund had been losing money since before the recession, with payouts to unemployed Kentuckians exceeding contributions from employers since 1999.

The state took out the loan in January 2009. During that year’s legislative session, lawmakers also increased the amount employers pay into the unemployment insurance fund.

Kentucky was one of 30 states to borrow money to pay off unemployment insurance expenses. Four states and the Virgin Islands still owe money to the federal government, according to the National Conference of State Legislatures.

Can we count on your support?

Louisville Public Media depends on donations from members – generous people like you – for the majority of our funding. You can help make the next story possible with a donation of $10 or $20. We'll put your gift to work providing news and music for our diverse community.